glossary Flashcards
Consumer goods
Physical and tangible goods sold to the general public - these include durable goods e.g. cars and washing machines as well as non durable goods such as food
Consumer services
Non tangible products sold to the general public e.g. insurance
Factors of production
These are resources needed by a business to produce goods and services
CELL
Land
includes the land itself as well as the renewable and non renewable goods (coal , oil , timber)
Labour
Manual and skilled labour of the workforce of the business
Capital
- Finance needed to set up a business as well as pay for its continuous operations
- also the physical goods used by industry to aid in the production of other goods and services
e.g. machines and commercial vehicles
Capital
- Finance needed to set up a business as well as pay for its continuous operations
- also the physical goods used by industry to aid in the production of other goods and services
e.g. machines and commercial vehicles
Enterprise
Driving force provided by risk taking individuals who combine the other factors of P into a unit capable of producing goods and services.
It provides a managing , decision making and coordinating role (MDC)
Creating value
Increasing the difference between the cost of purchasing bought in materials and the price the final goods are sold for
Added value
The difference between the cost of purchasing bought in materials and the price the finished goods are sold for
Opportunity cost
The benefit of the next most desired option which is given up
Entrepreneur
Someone who takes the financial risk of starting and managing a new business venture
Social enterprise
A business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximizing returns to owners
Triple bottom line
The three objectives of social enterprise
Economic
Social
Environmental
Primary sector business activity
Firms engaged in the extraction of natural resources so they can be used and processed by other firms
